Blogs » A Constitutionalist & Believer in Natural Law » US Taxpayers Loose On Investment

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It was sold as an investment that would save the American Auto Industry, and the taxpayers would in time even make money on the deal, while keeping Americans employed.

The US government recently sold taxpayers remaining 6% investment in Chrysler Group to an Italian automaker Fiat, wrapping up the 2009 auto bailouts that were part of TARP.

Fiat paid the Treasury a total of $560 million for the remaining shares, as well as rights to shares held by the United Auto Workers retiree trust.

Taxpayers’ original investment totaled $12.5 billion dollars to help form the Chrysler Group out of the old Chrysler Corporation. The Chrysler Group had until 2017 to pay the investment back with interest. The new Chrysler Group paid back $5.1 billion in loans before the sale.

Tim Massad, Treasury assistant secretary for financial stability, called it a "major accomplishment."

Overall, $1.3 billion of US taxpayers’ investment will not be recovered from the bankrupt old Chrysler.